Powys will need to borrow £30 million a year if it is to meet Welsh Government climate targets, a meeting has heard.

At a meeting of Powys County Council’s Finance Panel on Friday, July 26, the cost of achieving net zero by 2030, as is the Welsh Government's plan for councils, was discussed as part of a debate around an updated Financial Planning report.

The report explains that an investment of £563 million is needed to maintain and upgrade the council’s 650 assets which includes school buildings, leisure centres and the farm estate.

Of this figure £447 million would be needed to “achieve Net Zero requirements and reduce the council's carbon footprint”.

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This cost is on top of the council’s other “aspirations and usual activities” such as maintaining roads.

To do this the council would need to borrow around £30 million a year – which would be paid back from the council’s revenue budget.

Plaid Cymru group leader, Cllr Elwyn Vaughan said: “There’s a huge potential capital expenditure to achieve Net Zero, we’re already in 2024 and 2030 is not that far away.

“It has a potential annual borrowing cost which would have a huge effect on our annual budget.

“I think there needs to be a mature, honest conversation not just in Powys but on an all Wales level how achievable some of these targets are.”

Cllr Elwyn VaughanCllr Elwyn Vaughan

He added that the United Nations convention on Climate Change had set a Net Zero target of 2050 with an interim target of 63 per cent by 2030.

Cllr Vaughan said: “That’s a huge difference to our target by 2030 and a third less would mean £10million less costs per year.

“We all want to achieve these aims as soon as possible but we have to be realistic.”

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He asked if local authorities and the Welsh Local Government Association (WLGA) were in talks with the Welsh Government to lower the target to lighten the “financial pressures” on councils.

Director of corporate services Jane Thomas said: “At the moment no authority is in a place to be able to afford to invest to achieve that Net Zero commitment by 2030, we are clear without significant support from government we can’t do that and fulfil all of our obligations."

Portfolio holder for finance, Labour’s Cllr David Thomas said: “I do share the concern, it’s pretty much impossible.

“If we’re going to achieve it on target then it’s going to take some input from Welsh and UK Governments because the figures, we’re talking about are astronomical."

He reminded the committee that there was a lot of “good work” being done in the council on climate and nature so that they can understand what can be “delivered ourselves.”

The financial planning update report will be in front of councillors at a cabinet meeting, tomorrow, Tuesday, July 30.

In the drive to tackle climate change the Welsh Government has put local authorities in the 2030 Net Zero vanguard – everyone else will be expected to be carbon neutral by 2050.